Bipartisan consensus is often viewed as a good thing, but that is not always the case. When it comes to Nippon Steel’s proposed acquisition of U.S. Steel, the opposite, in fact, is true. As leaders from both political parties line up to oppose this deal, they are unwittingly aligning themselves against the best interests of American workers, particularly those in Pennsylvania.

The recent announcement by Democratic Presidential candidate Kamala Harris opposing the deal, coupled with reports that President Joe Biden is preparing to block it, showcase a troubling trend. That this ill-advised opposition is not limited to one side of the aisle — former President Trump has also pledged to block the proposed acquisition if he wins in November and is running with one of its most vocal critics — is cause for even greater concern.

Generally, such a rare show of cross-party agreement might appear to be commendable, but a closer examination reveals that such groupthink is leading us astray. The truth is that joining these two companies together is not just good for steelworkers, it is vital for the future of the Keystone state as well.

Pennsylvania’s manufacturing sector has been struggling over the last few decades with more than 4.4 million jobs lost since 1999. This multibillion-dollar transaction offers a lifeline, promising to inject vitality into one of our state’s most iconic companies and bringing tangible benefits to workers, communities, and the broader economy.

Included in the $2.7 billion capital commitments Nippon Steel has made is a $1 billion investment to enhance the competitiveness of the Mon Valley Works, the last remaining U.S. Steel factory in the Pittsburgh area. In the previous decade, U.S. Steel struggled with high costs and low steel prices, deferring mill maintenance and subsequently canceling a planned upgrade to the plant. Without this infusion of much needed capital and expertise, the historic mill faces an uncertain future. 

U.S. Steel, on its own, lacks the resources to upgrade the facility to keep it competitive. If the deal falls through, Mon Valley Works could face indefinite closure in the near future, with U.S. Steel likely shifting production and jobs to less capital-intensive operations such as its Next Generation Steel Mill in Arkansas. A southward shift in production could also prompt U.S. Steel to relocate its headquarters out of the region, with the company’s CEO remarking “if that mill won’t make it to the next decade, why would we stay there?” This would deal a double blow to Pennsylvania’s economy.

Moreover, the other alternatives to this proposed deal are equally unappealing. If the Nippon Steel deal falls through, U.S. Steel could be acquired by Cleveland-Cliffs, an American suitor that was the runner-up in the bidding war for the company last fall. Misplaced concerns about foreign ownership leading to job losses has obscured Cleveland-Cliffs’ own mixed record of protecting steelworker jobs at companies it has acquired. Had it been successful in the 2023 budding process, reports indicate that the company was preparing to relocate the current U.S. Steel headquarters out of state. 

At a broader economic level, allowing Cleveland-Cliffs to acquire one of its primary domestic competitors would lead to increased market concentration. While business consolidation is not in and of itself cause for concern, the fact that the steel industry has already undergone a significant amount of it over the last 50 years warrants a closer examination of this deal. Should Cleveland-Cliffs acquire U.S. Steel, it would control 100 percent of U.S. blast furnace production, 100 percent of domestic steel used in electric vehicle motors, and 65 percent to 90 percent of other domestic steel used in vehicles. Allowing a bad deal to move forward that would empower one company to control such a large share of the market and potentially lead to increased prices for domestic steel could harm not only steelworkers, but also American manufacturers who rely on competitively priced steel.

It is understandable that the prospect of foreign ownership of a storied American company raises concerns, but opposition to this merger from both sides of the political aisle is misguided. Nippon Steel is owned by one of America’s closest allies and brings not just capital, but also advanced technology and global market access that can benefit U.S. Steel and America’s domestic steel industry to thrive in an increasingly challenging market.

Our political leaders need to look beyond short-term political gains and consider the long-term economic interests of Pennsylvania and its workers. In today’s globalized economy, international partnerships are often necessary for companies to remain competitive. We can embrace this opportunity for growth and innovation, or we can watch our steel industry slowly decline, taking jobs and economic vitality with it.

Becky Corbin is a former member of the Pennsylvania House of Representatives. During her time in office, she was a member of the Environmental Resources and Energy Committee.